Global index provider S&P Dow Jones Indices (S&P DJI) and the Indonesia Stock Exchange (IDX) jointly launched three new stock indices aimed at providing global investors with new benchmarks while supporting the development of derivative products in Indonesia’s capital market.

The new indices − ESG-based, dividend-based, and sharia-based − were officially introduced at the IDX Main Hall in Jakarta on Monday, November 3, 2025. The collaboration marks a major milestone in aligning Indonesia’s market infrastructure with international investment standards and sustainable finance practices.

IDX Director of Trading and Member Regulation, Irvan Susandy, said the partnership combines global indexing expertise with deep local market understanding to create “a new generation of benchmark indices” serving both domestic and international investors.

“S&P DJI has long been recognized for its innovative index solutions that reflect investor values and strategies. This partnership unites S&P DJI’s global experience with IDX’s deep knowledge of Indonesia’s capital market,” Irvan said during the launch ceremony.

He added that the collaboration also allows IDX-branded indices to be licensed internationally for use in index-linked financial products, such as Exchange-Traded Funds (ETFs), mutual funds, and structured warrants.

Derivative market on the rise

Financial derivative products, including ETFs and passive funds, have grown rapidly in Indonesia’s capital market in recent years. The proportion of assets under management (AUM) tied to such instruments surged from just 1.4 percent in 2016 to 20.1 percent as of September 2025, Irvan said, citing data from the Financial Services Authority (OJK).

As of September 2025, there were 74 index-based passive mutual funds and ETFs listed on the IDX with total AUM reaching Rp 16.41 trillion (US$982 million), up sharply from 23 products worth Rp 5.9 trillion in 2017.

“These figures show a clear trajectory Indonesia’s derivative investment products are no longer niche but are becoming an integral part of market diversification,” Irvan said.

Head of Sales for Asia Pacific at S&P DJI, Rick Chau, said the collaboration reflects the company’s commitment to enhancing market accessibility and strengthening Indonesia’s financial ecosystem through innovative index solutions.

“These indices are designed to capture diverse opportunities outlined in Indonesia’s Capital Market Roadmap including the development of new instruments, advancement of sustainable finance, and expansion of the Islamic capital market,” Chau said.

Supporting ESG, growth

IDX’s Head of Issuer Information Management and Development Division Ignatius, Denny Wicaksono, cited that the new indices were developed to cater to specific market needs.

For the ESG index, listed companies must demonstrate measurable performance in environmental, social, and governance (ESG) practices. Assessments are conducted using the Corporate Sustainability Assessment (CSA)framework developed by S&P.

“When companies achieve strong CSA scores, they can be included in S&P’s sustainable index universe. We aim to facilitate firms that demonstrate top-tier ESG performance through this dedicated ESG index,” Denny said.

The dividend-based index, meanwhile, focuses on Indonesian companies with strong dividend yields typically over 6 percent of their share price.

Denny noted that while the current IDX index engine could not yet calculate total returns, partnering with S&P DJI allows the exchange to provide comprehensive return metrics for investors.

“This partnership allows us to measure total returns, including dividends, so investors can better gauge the performance of their investments. It’s a practical strategy for assessing long-term corporate growth,” he said.